Enterprise Fund has been good to Perry, Dewhurst

From staff reports :
April 8, 2013
: Updated: April 8, 2013 10:05pm

UT-Austin President William Powers is being investigated by trustees over loans.

AUSTIN — Texas' top three lawmakers have collected more than $3.6 million in contributions from donors affiliated with companies that received millions in grants from a state incentive program, according to a new study from a state watchdog group.

The study, released Monday by Texans for Public Justice, delves deep into the political spending of folks associated with 38 projects that drew a total of roughly $307 million in state grants from the Texas Enterprise Fund, a job creation program that has drawn the ire of lawmakers this session because of a perceived lack of transparency.

The study found Gov. Rick Perry has collected more than $2 million in related contributions since the fund was created in 2003. Perry's biggest donor related to the fund is Houston Texans owner Robert McNair, a major investor in Lexicon Pharmaceuticals. Lexicon is a partner with the Texas Institute of Genomic Medicine, which received $50 million from the enterprise fund in 2005.

Dewhurst got $1.3 million in contributions. His top related donor is San Antonio's James Leininger, who invested in biotech firm Gradalis, which was awarded a $1.75 million grant in 2009 from another state incentive fund.

Rep. Joe Straus, who started helping oversee the fund's grant-awarding process in 2009, brought in $232,800 in enterprise-fund contributions, with 90 percent of that total coming since he was elected House speaker.

The Board of Regents and the legislators have been engaged in an escalating power struggle that centers on the board's investigations into UT-Austin President William C. Powers, with some suggesting that he has not been forthcoming about “forgivable loans” awarded by the law school foundation to faculty. A review by the board's own general counsel concluded Powers had not engaged in wrongdoing. A few weeks ago, Sen. Judith Zaffirini, D-Laredo, sent an open records request to the board, asking to see all documents, including emails, that refer to Powers.

“My only conclusion is that he has something to hide,” Zaffirini said of Powell's decision.

Regent Steve Hicks, an Austin businessman, said he would call for a vote to “turn over the requested documents” promptly to lawmakers.

School accountability system still under fire

The legislature took another jab at the state's accountability system Monday when the Senate passed a measure that would continue to suspend parts of its implementation.

Just a year after the state implemented a new high-stakes standardized test, called the State of Texas Assessment of Academic Readiness, or STAAR, the Legislature has introduced bills to reform it and other elements of the state's accountability system.

Senate Bill 1109 maintains that the commissioner of education would continue to implement sanctions and interventions for schools identified as unacceptable in the 2010-11 academic year and still would report performance indicators after 2012-13. The bill would make an exception for schools that have improved performance ratings had the standards been applied in the 2012-13 school year.